Pedestrians seen walking past the Canadian sportswear retailer Lululemon in Shanghai.
Alex Tai | SOPA pictures | LightRocket | Getty Images
Lululemon said Monday that fourth quarter earnings and sales will now be at the high end of the previous outlook thanks to the strong performance during the vacation.
Ahead of virtual meetings with analysts and investors this week at the annual ICR conference, the company called for adjusted earnings per share growth at the high end of its previously announced mid-single-digit growth expectations. Net sales for the quarter ended Jan. 31 are expected to grow at the high end of its expectations for medium to high teens, it said in a statement.
Lululemon stock was down more than 2% on the Monday before trading. The stock is up more than 54% in the past 12 months.
BMO Capital Markets analyst Simeon Siegel said stocks likely fell as Wall Street expected the sportswear maker to improve its outlook.
“Investors expected a blow, not a break,” said Siegel. But most retailers are “just beginning to recover,” he added.
CEO Calvin McDonald said Monday the company was “happy with the momentum during the holiday season as our investments in Lululemon and Mirror enabled us to interact with guests both physically and digitally.”
In December, Lululemon posted third-quarter sales of $ 1.1 billion, up 22% year over year.
Lululemon has not given an outlook for the full year due to the ongoing effects of the Covid pandemic.
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